What the Heck Does “Negative Earnings Growth” Mean?

Man Struggling with Fin ChartEveryone has a pet peeve about a word or phrase that drives them crazy. And I’m no exception.

But this one has deeper implications. I believe it sets up a false narrative about the state of our business and economic health.

I’m talking about the phrase “Negative Earnings Growth.”

You’ve heard it in many forms. And from a variety of people.  Newscasters, “expert” commentators, journalists, spin doctors, corporate spokespeople, government officials, and economic bigwigs have all twirled the phrase. They may think they’re helping by not alarming people, but I contend they actually do us all a disservice.

Here are some examples and variations on the theme:

  • “We’ve experienced negative earnings growth in the last quarter.”
  • “The job market is going through a period of negative growth.”
  • “Our year-over-year GDP comparison shows a negative growth trend.”
  • “Same store sales indicate negative profit growth month-to-month in the northeast.”

Aarrrgggghhhhh!!!!

“Negative Growth” is a “LOSS!” Or a “Reduction.” Or a “Shortfall.” Or a “Decline.” Call it that!

Stop trying to tell me it’s growth, but in a different form! I don’t want you to sugarcoat it.

I want you to respect my intelligence and speak plainly about the state of my company, industry, and/or the economy. Stop worrying about looking bad and start worrying about telling us where things actually stand. Only then will we have the right information in the right format to enable us to make smarter decisions to reverse the trend.

American businesses have a remarkable ability to heal and rebound. But when people are afraid to tell us we’re sick, it hinders our ability to make the best moves to get better.

And that’s my plea for 2015. Stop the spin. Treat me like a thinking human being. And stop telling me a loss is really a gain, just in a different direction!

Okay, enough ranting. If you’ve got a phrase you’d like eliminated in 2015, share it below!